1. Utilizing the information provided and available from web sources, use the ethical decision-making techniques discussed in the chapter to form an opinion about whether Merck’s decisions regarding Vioxx were ethical. Show your analysis. Were the consequences of Merck’s decision beneficial to its stakeholders?
2. In order to protect the public more fully, what should the FDA do given the Vioxx lessons?

On September 30, 2004, Merck voluntarily withdrew its rheumatoid arthritis drug (Vioxx) from the market, due to severe adverse effects observed in many of its users (Exhibit 1). As a result, Merck’s share price fell $11.48 (27%) in one day, translating to a market-cap loss of $25.6 billion. On August 19, 2005, the day a Texas jury found Merck liable for the death of a Vioxx user, the company’s market cap fell another $5 billion. During this trial it became apparent that Merck had been profiting from Vioxx during the time it knew Vioxx had serious adverse effects.